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2 Mar 2022 07:00
Trading update
2 March 2022
Stagecoach Group plc welcomes yesterday's announcement by the Department for Transport of further recovery funding for the continuation of regional bus services in England, and provides the following trading update.
We are on course to meet our trading expectations for the year ending 30 April 2022, with both our regional bus and London bus businesses performing broadly in line with our expectations.
The Omicron variant of COVID-19, and the related restrictions, did affect demand for our bus and tram services for a period of time. Additional recovery grant funding from the Department for Transport for bus services in England has helped offset the financial impact of that and allow the Group to continue to provide critical transport services. We welcome yesterday's announcement that recovery funding will be available for bus and light rail services in England for a period of six months from 6 April 2022 to October 2022.
We also welcome the Scottish Government's recent announcement of a £94m bus grant scheme for the period from 1 April 2022, which includes £40m to support the recovery of demand for bus services in Scotland.
The additional funding amounts will enable the continuation of transport services as customer demand continues to recover, while also supporting the planning of future transport networks that take account of the emerging pattern of demand.
We are pleased to see a recovery in demand since the easing of COVID-19 restrictions in January. Prior to the recent period of poor weather, overall journeys for our regional business during the first half of February ranged between 70% and 78% of pre-COVID-19 levels on a rolling seven-day average.
Looking beyond April 2022, we expect further recovery in demand for our services, although we also see continuing forecasting uncertainty in relation to passenger demand, payments from government to support the continuation of regional bus services during that recovery phase, and cost inflation.
Furthermore, we remain positive on the long-term outlook for the Group. Our services are central to delivering government ambitions around decarbonisation, levelling up of communities, driving economic recovery, and securing better health outcomes for citizens.
Martin Griffiths, Stagecoach Chief Executive, said: "We are pleased at the continuing recovery in demand for public transport as the country looks to transition out of the pandemic, and we welcome the extension in government funding.
"Ensuring bus and light rail networks have a solid base now will ensure they are sustainable for the long-term and have the capacity to grow as we work with government and local transport authorities to attract people out of cars and onto greener public transport.
"We continue to see a positive long-term outlook for public transport, which is key to economic recovery, levelling up communities and helping secure the country's net zero ambitions."
For further information, please contact:
Stagecoach Group plc www.stagecoachgroup.com
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